History in the Making:Trump signs first phase of US-China trade deal

3 years ago Many a liberal and Democrats in the media and in this forum said this will never happen well today it became a reality! @SaremChuuk @redsnapper @FactsMatter @errr @visafree @nesian691 @SakaSaka ,


January 15, 2020 - 01:04 PM EST

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President Trump and Chinese Vice Premier Liu He signed an initial "Phase One" trade agreement Wednesday, freezing a 20-month trade war between Washington and Beijing and opening the door to a more-substantial "Phase Two" deal.

The deal, text of which was not released ahead of the signing, is said to include commitments by China to buy $200 billion of U.S. goods, including as much as $50 billion in agricultural products over two years.

"Today we take a momentous step, one that has never been taken before with China, toward a future of fair and reciprocal trade as we sign Phase One of the historic trade deal between the United States and China," Trump said.

"Together we are righting the wrongs of the past and delivering a future of economic justice and security for American workers, farmers and families."

The deal will halve 15 percent tariffs on $120 billion of Chinese imports, but leave 25 percent tariffs on an additional $250 billion of imports in place. Agreement on the deal prevented a planned increase in the tariff rate in October and a new round of tariffs in December.

Businesses are eagerly awaiting the text of the agreement, with trade watchers raising concerns about enforceability and the extent of China's commitment.

Speaking to CNBC Wednesday morning, Treasury Secretary Steven Mnuchin said that Trump could reimpose tariffs in the event that China reneges on its commitments.



Mnuchin noted that the first part of the deal included provisions on intellectual property, forced technology transfer, agriculture, financial services and currency, but agreed that significant issues remain for future negotiations.

"There are certain areas of other services away from financial services that will be in Phase Two. There's certain additional cybersecurity issues that will be in Phase Two. So, there are still more issues to deal with. And we'll address those," he said.

Trump himself has raised the possibility that he could postpone Phase Two, which would address the thorniest issues like intellectual property, technology, state-owned enterprises and industrial subsidies, among others, until after November's election.

The president signed Phase One at an ostentatious ceremony in the East Room of the White House, where he was joined by a high-ranking Chinese delegation, top administration officials and several high-profile guests, including Fox Business Network host Lou Dobbs, GOP donors Sheldon and Miriam Adelson and former Secretary of State Henry Kissinger, who served as an intermediary for the administration in negotiations with China.

Top White House economic adviser Larry Kudlow told reporters prior to the signing ceremony that the U.S. got about "half" of what it was looking to achieve with China in the Phase One deal. Still, he portrayed the initial pact as "historic."

"The other half, it's not that we didn't get it, it's just incomplete," Kudlow said. "The heavy lifting here was getting Phase One. Make no mistake about that. Nothing like this has ever happened before in history."

The president campaigned on cracking down on China, and even some Democrats cheered his efforts to confront Beijing over its economic practices. But the path to Wednesday's signing was fraught.

The two countries levied tens of billions of dollars in tariffs on each other, raising concerns of a global recession. U.S. farmers, in particular, were hurt by the trade war, with the Trump administration announcing billions of dollars in subsidies to placate them. The two sides appeared close to a deal last year, only for talks to break down.

Negotiations restarted in earnest last summer, when Trump reportedly told Chinese President Xi Jinping he would not raise the protests in Hong Kong amid discussions. Trump then announced in October the two sides had reached a deal; the White House announced in December that a Phase One pact had actually been reached.

Still, the White House pointed to the Phase One signing as validation of the president's unorthodox negotiating strategy.

"Early in this administration, you made it clear that the era of economic surrender was over, and you took a strong stand for American jobs and American workers," Vice President Pence said to Trump at the ceremony.

"You said to our friends in China that things had to change, and thanks to your leadership, today change begins," he added.

https://thehill.com/policy/finance/478396-trump-signs-first-phase-of-us-china-trade-deal

Comments

  • The age of US economic surrender and being taken advantage of by its trade partners is gone. Canada brought to its knees along with Mexico and NATO and now China is about to Kowtow to Trump.

  • you have to be ashamed of yourself for advocating someone who the government of the people of united states have impeached for abusing the power of the highest office of their land, someone who have emerged to be the most corrupt president in the history of the country, and you be the most ignorant of the fact so ignorantly exposing your stupidity..
  • Not the people of the United States. The DEMOCRATS impeached him. Not one single Republican voted for it in the House. But there will be Democrats voting alongside Republicans in the Senate to dismiss the Impeachment.

    Lol
  • well, like the speaker mentioned," President Donald John Trump is Impeached forever",let me put it this way, the democrats are within their constitution when applying the impeachment of the president and the republican are against their constitution when obstructing the impechement..
  • Like the prosecutor mentioned "There must never be a narrowly voted impeachment or an impeachment substantially supported by one of our major political parties and largely opposed by the other, Such an impeachment would lack legitimacy, would produce divisiveness and bitterness in our politics for years to come and will call into question the very legitimacy of our political institutions," Jerrold Nadler D-NY 1998
  • Yes it's true, Trump is righting the wrong he did two years ago when he started this trade war and it's sad to see US loosing china as a economic partner, apparently this was Trump's main goal.. sad state of affairs.
  • The US Gov is losing its mind just like Trump is losing his.

    Instead of fair business competition among UN member countries, US has been sanctioning nation after nation, threatening nations with Sanctions if they don’t buy American, if they don’t comply with American demands.

    Some of the countries include
    Cuba, North Korea, Venezuela, Iran, Russia, China, India, Turkey, Iraq, the European Union......

    What’s up with this Sanction shit?
    What, America cannot compete anymore?
    Or has America changed its tactic in doing business?

    Oh ok I see..,,,It’s no longer,
    “Let’s Make America Great Again”

    It’s “Let America Go To War Again”
  • Trump is winning on the majority of his camping promises. That's all that count.
  • True That eh AC . its all about greed and power in this Trump presidentcy..shame!
  • Shame for those who are fooled by the mainstream media.
  • Trump, winning on majority of his campaign promises.....mmmm lets see

    What are Trump’s campaign promises?

    Trumps Top 5 Promises

    1)Repeal Obamacare
    2) Build a wall, and make Mexico pay for it
    3)Suspend immigration from terror-prone places
    4) Cut taxes for everyone
    5) Lower the business tax rate

    Trumps Broken Promises

    1) Trump promised to eliminate the Federal debt in 8 years

    Update: As of today, Federal debt is up, not down under Trumps watch

    2) Trump promised to cancel funding of sanctuary cities

    Update: Despite efforts, Trump fails to cut funding from sanctuary cities

    3) Trump promised to establish a commission on radical Islam

    Update: No signs of commission

    4) Trump promised to enact term limits for all members of Congress

    Update: No term limits enacted

    5) Trump planned to build 450 miles long border Wall by the end of 2020. Source of funding:US tax payers not Mexico

    On Sept 3, 2019, US Secretary of Defense Mark Esper authorized the use of $3.6 billion in military construction funding for 175 miles of the border wall.

    On January 13, 2020 Trump planned to divert an additional $7.2 billion in Pentagon funding for the border wall, 5 times more than what Congress authorized him to spend.

    Who’s the lucky contractor?

    Fisher Sand & Gravel, a North Dakota construction company.

    Owner: Tommy Fisher

    Tommy Trump at his 2018 State of the Union Address through Republican North Dakota Senator Kevin Cramer, who received campaign contributions from Tommy Fisher & his wife.

  • Would Trump administration people try to time such events to benefit from them most politically?
    Does a bear poop in the woods?

    Next up will be what everybody knows will be a Trump impeachment acquittal as there never was any chance of a two thirds vote for conviction in the Senate.

    Trump will then begin his 2020 campaign claiming to have been vindicated. Watch for all kinds of new legislation, all designed to buy votes to assure his victory. And while he will still have his base with him, the impeachment polls showed the over half of us wanted him removed.

    At this point I think independents could hold his 2020 fate in their hands, theoretically. My caveat there is what states they are in is key, and then how much vote flipping is done compared to 2016. Notice how nothing is published about domestic computerized vote rigging anymore with all the diversion news thrown at us every day

    On January 15, the US president signed a ‘historic’ trade deal with China in the White House. Strangely enough, the deal was signed by the US president himself despite the fact that his Chinese counterpart was not there. From the Chinese side, China’s Vice premier, a foreign dignitary far below in protocol, signed the deal.

    Why did Trump want to sign the deal himself? One important reason for this is his bid to project himself as a ‘deal maker’—a projection that he intends to use in his re-election bid.

    Trump’s own presence also shows that the deal was important for him not only economically, but also politically at a time when he is facing impeachment, although chance of its success are minimum. While Trump boasted this deal off as a US victory, a close reading shows that this is far from the case.

    If anything, the fact that Trump had made a deal shows that the underlying objective of trade-war China i.e., crushing the Chinese economy, has not been achieved. On the other hand, loses caused by this trade-war to the US economy could have damaged Trump’s political reputation irreparably if he had continued to wage it.

    As a matter of fact, what Trump calls a “US victory” is only an agreement that lets China buy US products—things that it has always wanted to buy and was already buying before Trump began the war.

    Ironically enough, China’s purchases are going to be as much only as they were in 2017, including $52.4 billion of energy exports, $32 billion of agricultural commodities, $77.7 billion of manufactured goods and $37.9 billion of services.

    Secondly, why this cannot be an American victory is the fact China has made commitment only for the next two years. What happens after two years is unclear in as much as no practical arrangements for a long-term implementation of the ‘deal’ have been spelt out.

    And, while the ‘deal’ allows China to buy US products, the Chinese premier made it clear that China will buy goods “based on the market demand in China,” suggesting Beijing may not view the targets as so ironclad. One reason, perhaps, for this is China’s contracts with other countries.

    And, while US states where agricultural produce is high did vote for Trump in the 2016 elections, Trump’s ‘triumphant deal’ seeks mainly to make amends to the farmers, a US economy sector most hit by Chinese retaliations.

    After China’s decision to stop buying US agricultural products, American Farm Bureau Federation President Zippy Duvall was reported to have said that this decision “is a body blow to thousands of farmers and ranchers who are already struggling to get by.” This did work for China, but not for president Trump both politically and economically.

    According to a report of US Farm Bureau, farm bankruptcies are on the rise in the US since 2018. Farm bankruptcies are up 24% from the prior year and the highest level since 676 filings in 2011, becoming a big reason for the US president to worry that might bit him hard in the elections if the Chinese continue to stay away from the US products, and hide behind the ‘demand any supply’ caveat.

    That the deal was meant to cover up loses in the agriculture department and that it has clear political underpinnings for Trump is evident from the way the states that voted for Trump in 2016 are also the states where farm bankruptcy is the highest. Consider this: farm bankruptcies are highest in Wisconsin, Georgia, Nebraska.

    And, all of these states had voted for Trump in 206 elections. In Wisconsin, Trump had won 47.8 per cent of votes. In Georgia, Trump had won 51 per cent of votes. In Nebraska, Trump had won 59.9 per cent of votes, and in Kansas, Trump had won 57 per cent of votes. In 2018-19, there were 48 bankruptcies in Wisconsin; 37 in Georgia, Nebraska and Kansas.

    All of these states experienced bankruptcy filings at or above 10-year highs, undoubtedly depicting a grim result of Trump’s ‘trade war’ with China, and how that ‘trade-war’ has directly hit Trump’s own vote bank.

    It was clearly a misconceived war that Trump had waged, and had to blink first now in order to save his voters; hence, the explanation: Trump has not been able to beat China economically. On the contrary, Chinese retaliation was powerful enough to shake Trump’s political foundations from its core.

    While Trump had tried to assuage the fears of the farmers through $28 billion in aid for farmers affected by the tariffs, this led to yet another politically and economically counter-productive situation whereby 40% of farm profits this year are expected to come from federal assistance, signalling how critical the situation had become for Trump before he decided to sign the deal.

    It also clearly explains why Trump wanted to sign the deal himself. The intention, in simple and plain words, was to speak to his farmer voters and show them how ‘mindful’ of their problems he really is, and that only he could have done such a deal (although it is hard to forget that only he could have caused the damage in the first place).

    Nonetheless, Trump’s projection of the deal as a “US Victory” signals how he intends to use it. In his election campaign, he is most certainly going to sell his ‘tough stance’ on China, and how it has ‘paid off’ in terms of ensuring a consistent Chinese purchase of US agricultural products.

    Of course, a necessary nuisance that Trump will have to counter will be Chinese refusal to buy these products because of ‘lack of demand.’ As such, while the deal might have paid off in terms of a cease-fire, it might not pay off on the elections day.
  • That's right, he feels the pressure by the farmers, ( his constituents) that he got no other obtion but to stop the trade war but the damage has already done in regard to USA's trading relationship with the second most powerful economy in the wrold.
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